Xbox sales decline Microsoft’s gaming division grows revenue – The Hollywood Reporter

Microsoft CEO Satya Nadella

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Microsoft’s Xbox console sales fell 7 percent, while the gaming system’s content and services increased 13 percent, Microsoft said Tuesday as part of its earnings report.

The gaming division’s total revenue rose 8 percent in the most recent fiscal quarter, which follows the technology company’s transformation into a video game powerhouse by closing a $68.7 billion deal to acquire Activision Blizzard.

The largest deal in Microsoft’s history, led by CEO Satya Nadella, will make it the world’s third-largest gaming company by revenue, behind Tencent and Sony.

The acquisition brings together Microsoft, which owns the Xbox gaming platform, and Xbox Game Studios – which owns the Xbox gaming platform Starfield Developer Bethesda Softworks and 343 Industries, among other game publishers – along with Activision, the game’s manufacturer Call of duty, Diablo, Cans And Tony Hawk Franchises, among other things, and the owner Crush candy And Farm heroes saga King maker.

During the first quarter, Microsoft’s Xbox revenue fell 7 percent. At the same time, Xbox content and services revenues continued to grow on the strength of monetization of third-party and first-party content and growth through Xbox Game Pass, the technology company’s subscription service that gives users access to Xbox games on consoles, PCs and mobile phones. Devices.

Microsoft’s total revenues rose 13% to $56.5 billion, and net income jumped 27% to $22.3 billion.

Microsoft executives will discuss their latest financial results during an after-hours analyst call on Tuesday.